Online Forex Trading Account, What is the difference between Forex Demo account and Forex Real Trading Account: When opening a Forex Trading Account Online with an overseas Forex trader, the “demo account” definitely appears.
In this blog, we will introduce in detail what a “demo account” is, the difference between a real account and a demo account, and examples of how to use an online forex demo account.
Online Forex Trading Account, Everything about Demo Account
A “Demo account” is an account used for trading with virtual money without depositing real money.
Even though it is a demo, it will be delivered at the same rate as the actual exchange rate, so you can practice trading just like the real thing.
The usage is different for each person, but it is ideal for practising trading and testing the operation of automatic trading programs.
Difference between a real account and demo account
Online forex account and Demo accounts are completely different, although the actual trading screens and trading tools are similar in terms of usability.
Let’s deepen our understanding once again about the difference between a real account and a demo account.
Real money is actual money, the demo account is virtual money
The biggest difference between a real account and a demo account is whether you use real money or virtual money for trading.
As the name implies, a real account is an account that moves real money (real money), deposits your own investment funds, and uses that funds to perform Forex trading.
When the balance of the real account and the unrealized profit/loss go up or down, it means that the funds on hand increase or decrease.
One demo account is an account for online forex trading with virtual money (virtual money).
You don’t deposit real money, so no matter how much you earn or lose in your demo account, it won’t affect your wallet.
No demo trading orders flow to the market
The demo account rates will be delivered as close to real as possible, but the transactions are completely virtual.
If you place a very large order with a demo account, it will only keep an “order record” on the vendor’s server and will not affect the actual exchange market at all. Only real account transactions affect the forex market.
Account server and delivery rate
Almost all Forex traders have a separate trading server for real accounts and trading servers for demo accounts.
Also, due to different servers, there can be slight differences in delivery rates and spreads.
Precautions when using a demo account
As we explained earlier, the demo account is just a practice account for moving virtual money, so even if you earn 1 million INR or 100 million INR with the demo account, you cannot withdraw even 1 RS.
It only keeps a virtual transaction record of “earned”.If you can generate real money from virtual money, everyone will use a demo account … It’s natural.
The limited power of the demo account is completely unreliable
Since the Online Forex Trading server is different between the real account and the demo account, the contract power of the demo account does not necessarily guarantee the contract power of the real account.
Price movements and spreads are not much different, but “contract power” is a really unspeakable part of this.
It can be said that the contracting power of the demo account is completely unreliable because there are some cases such as “The demo account made a crisp contract, but the real account is slow and difficult to make a contract”.
Especially in scalping and automatic trading, contract power is a matter of life and death, so when testing the specifications of a trader, use a real account instead of a demo account.
Demonstration trading lacks tension and is not suitable for mental training
It is extremely dangerous for beginners to start investing their own funds in a real account, but on the contrary, “getting used to demos” is not a big compliment.
Relevant money management and mental control are essential to keep winning in trading, but if you repeat the demo account that only moves virtual money, you will get used to trading without tension.
You can only experience the tension before entry, your mental state in trading, the pain when you lose, and the reflection after you finish trading with a real account.
Even a small amount is fine, so it can be said that the shortcut to improving trading is to first experience the actual battle with a real account and repeat failures and improvements.
Overseas Forex Trading Company Offering Demo Accounts
Finally, we have summarized the recommended overseas Forex companies that offer demo accounts.
All vendors can use the demo account as soon as they have an email address and phone number, and there is no need to submit troublesome documents.
You can directly access the demo account opening page by clicking the vendor name in the table.
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